• Research Report

    A Final Budget Analysis: Taxpayers & Localities Lose, Spending Lobbies Win

    posted September 24, 2002 by John Hood
    After months of delay, the state legislature has enacted a revised FY 2002–03 budget that differs little from the plan originally proposed by Gov. Mike Easley in May. Lawmakers adopted nearly all the governor's $543 million raid on local government reimbursements and highway funds, changing only what percentage will be made up with a sales tax increase. Taxpayers are the big losers—entering the second of what promises to be three straight years of huge tax hikes.
  • Research Report

    The Miseducation Lottery: Public Presented With Inflated Revenues, Benefits

    posted June 2, 2002 by John Hood
    Gov. Mike Easley's proposed budget for FY 2002-03 includes $250 million in revenue from a state-run lottery that has yet to be enacted. Among many legitimate objections to the administration's idea are that expected net revenue is inflated by between 37 percent and 62 percent - creating a hole in the budget of as much as $96 million — and that the administrative costs of the lottery tax exceed both the cost of alternative taxes and any revenue "loss" to out-of-state lotteries.
  • Research Report

    Easley Budget Hikes Taxes: 2002-03 Spending, Revenue Ideas Deserve Scrutiny

    posted May 27, 2002 by John Hood
    Gov. Mike Easley's proposed budget adjustments for FY 2002-03 help to frame the coming fiscal debate in North Carolina. The plan relies primarily on increasing revenues — including more than $400 million in tax hikes, $250 million from a theoretical state lottery, and $210 million from raiding the state‘s Highway Trust Fund — rather than on budget savings. And contrary to the governor's assertion, his plan would increase state spending in the midst of a fiscal emergency.
  • Research Report

    Changing Course V: An Updated Alternative Budget for North Carolina

    posted May 5, 2002 by John Hood, Dr. Roy Cordato, Don Carrington
    With news of a worsening state budget and a weakened state economy, Locke Foundation analysts have updated last year's alternative budget with new projected savings and tax changes for FY 2002-03. The resulting Changing Course V budget would eliminate the deficit, repeal last year's hikes in sales and income taxes, stimulate the economy through additional tax relief and highway investment, and protect highpriority items such as public safety and classroom teachers.

2002-03 budget by Author